IVG Immobilien AG has sold the office building Boulevard Haussmann 173-175 valuing over € 100 million to the Allianz group in a company disposal. The building, which is fully let, has over 10,600 m² of office space and is situated in a good location in the center of Paris.
Since 1 November 2003 the only tenant in the building has been L´Immobilière du CMN, property subsidiary of the fifth largest bank in France, Crédit Mutuel du Nord. The property was built in two stages in 1863 and 1920. The property has been kept to a high standard due to regular renovations.
'The disposal of the Boulevard Haussmann property will lead to further satisfying book profits in the financial year 2004', commented Bernd Kottmann, Board of Directors member responsible for Portfolio Management at IVG, on the first day of the property trade fair EXPO REAL 2004. The high demand on the investment market also stabilizes this year´s net initial return in the centre of Paris at 6% and promotes attractive sales revenues.
According to Kottmann, IVG have again used this favourable market situation in terms of their buy-and-sell strategy to realize higher rental incomes and attractive enhancements in value. IVG is improving its property portfolio through better tenancy agreements or revitalisation. IVG uses the shift between different market cycles on the European property markets by purchasing and selling at the appropriate time.